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Oil losses continue as Trump cancels planned strike on Iran
The oil price fell by over $1 on Friday, continuing the losses of the previous session. Donald Trump canceled plans to attack Iran, which reduced fears of an escalation in hostilities after tit-fortat attacks earlier this week. Brent futures dropped $1.83, or 2%, to $88.55 per barrel at 0410 GMT. U.S. West Texas Intermediate crude (WTI), however, fell $1.60 or 1.8% to $86.11. Trump, who threatened to hit Iran'very hard', called off planned attacks on Thursday. He said that discussions with Iran have?progressed, and a peace agreement could be signed this weekend to reopen Strait of Hormuz for shipping. Iran's semiofficial Fars News Agency reported that Tehran has not approved any agreement. Tony Sycamore, IG's market analyst, said: "This could be a false dawn but the market has reacted quickly and decisively." He said that even though oil prices are correcting downwards, as long as they can remain above the support level of the low $80s the risks will be firmly "skewed" to the upside. The Iranian government announced the "closure" of the Strait of Hormuz on Thursday. This was a waterway through which traffic had been severely restricted. It said it would shoot at any vessel trying to cross the waterway. The Strait of Hormuz normally carries about a fifth (or more) of the world's oil and gas shipments, and Tehran has been blocking it for months. This has kept energy costs high. The Iranian state media reported that Iranian forces had prevented a tanker without coordination from crossing the Strait of Hormuz. The U.S. Military said on social media commercial ships continue to transit the waterway. "We'd be careful about assuming the extension of the cessation is a done deal. Even if the ceasefire is extended, it may be fragile. In a note published on Friday, ING analysts said that if the nuclear talks?do not progress?, they could easily fall apart. We believe that the market will reach an inflection in late July, if oil flows do not resume before then. Inventory levels and a seasonally higher?demand will push the price of a barrel up to $120-130. The Organization of the Petroleum Exporting Countries lowered on Thursday its forecast for the growth of world oil demand in 2026 from a 'previous 1,17 million barrels per daily (bpd), marking its second consecutive 'downward' revision. The group of producers also predicted that consumption would increase later. This increased its forecast for demand growth in 2027. The group expects oil demand in 2027 to increase by 1,73 million barrels per day, an increase of 190,000 barrels per day from its previous estimate. (Reporting and editing by Sonali Paul, Tom Hogue and Emily Chow)
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Copper prices rise on hopes for Middle East peace and a lower oil price
Copper prices rose on Friday, amid lower oil prices and optimism about a possible peace deal between the U.S.A. and Iran that would end the war. By 0300 GMT, the benchmark three-month contract for copper on?the London Metal Exchange had risen by 1.64% to $13,704 per metric tonne. The Shanghai Futures Exchange's most traded copper contract rose 1.5%, to 104960 yuan (15,516.30 USD) per ton. Donald Trump, the U.S. president, said Thursday that a "peace agreement" could be signed this weekend and reopen 'the Strait of Hormuz. Iran said, however, that no final decision has been made about a possible agreement. Copper is a widely used indicator of global economic health, and the war has affected prices. The copper prices on the?LME? and SHFE? fell to multi-week lows Thursday, amid the worst outbreak of violence between Iran and the U.S. since a ceasefire was agreed in April. The World Bank cut their global growth forecast for 2026 on Thursday due to the "war" and warned that a further drop could occur if the energy supply disruptions continue and financial market stress increases. The persistently high inflation has also raised concerns about the possibility of higher interest rates for a longer period. The European Central Bank raised borrowing costs for the first time on?Thursday. High interest rates dampen demand prospects for industrial metals that are growth-dependent. The outlook for Middle East peace has also largely influenced the prices of other base metals. Aluminium gained 1.09% on the LME. Zinc gained 1.03%. Lead gained 0.62%. Nickel gained 1.11%. Tin gained 0.76%. On the SHFE?, aluminium rose by 0.76%. Zinc gained 0.43%. Lead lost 0.46%. Nickel gained 0.9%. Tin rose 2.72%.
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Oil nears two-month lows, stocks extend rally on Gulf breakthrough hope
Asian stocks rallied on Friday amid hopes of a Middle East Peace Deal. The dollar and bond yields fell, oil prices dropped to a two-month low, and inflation fears were tempered. The market debut of?Elon's SpaceX is a hotly anticipated event. It has set a new record with the largest-ever initial public offer. The IPO raised a new record of $75 billion. This valued the rocket and spacecraft maker at $1.77 trillion, making Musk the first billionaire in the world. Donald Trump, the U.S. president, said that a deal for peace could be signed this weekend. This came after Trump had threatened to launch more attacks on Iran. He said that negotiations with Tehran were at the highest level of Iran's leaders and that a broad coalition?of regional powers had approved them. Trump's comments follow repeated episodes of optimism by the president, which have not resulted in a deal. This has kept markets on edge. Ray Attrill is the head of FX Strategy at National Australia Bank. If we hear anything from Iran that is positive, it's clear the odds of a peace agreement are going to change dramatically. If confirmed, the deal would be the biggest diplomatic breakthrough to date in ending the war that has lasted three months and caused global energy prices to rise sharply. On Thursday, the European Central Bank raised?interest rates to combat war-induced inflation. Prices fell to a two-month low?after the announcement of an agreement, before reducing?some losses. U.S. West Texas Intermediate crude futures fell 1.2% last to $86.69 per barrel on top of 2.6% overnight. Brent crude futures fell 1.1% to $89.40 a barrel after falling nearly 3% over night. The broadest MSCI index of Asia-Pacific stocks outside Japan rose 3.2%. This was led by the 7.4% increase in South Korea's KOSPI. Japan's Nikkei rose 2.7%. Hong Kong's Hang Seng rose 1.3%, while China's blue chip CSI300 gained 1%. Wall Street surged overnight, with all three major indexes posting their largest daily gains since the U.S.-Iran agreement on a temporary "ceasefire" in April. The Nasdaq rose 2.5% on expectations of a successful market debut by Musk's SpaceX. IG estimates that the expected market capitalization of SpaceX by the end of the first day of trading would be just under $2.4 trillion. Tony Sycamore said that the market cap of SpaceX... would be about 35% more than the $1.78 billion valuation set for the IPO. This, in turn, indicates that the SpaceX share price will finish today somewhere between $175/$180. Treasuries kept their gains, as markets trimmed bets on a Federal Reserve rate hike this year due to hopes of a Gulf peace deal. The price of a rate hike in October is now 36%, down from 51%. The yield on two-year Treasury bills was unchanged at?4.074%, after falling 6 basis points overnight. The benchmark 10-year Treasury yields remained at 4.4710% after dropping almost 8 basis points overnight. After overnight losses, the dollar stabilized. After a?0.4% decline in the previous session, it rose by 0.2% to reach 160.20 yen. The yen is still close to the 160 mark, which many traders see as a line drawn in the sand. After overnight increases, the Australian and New Zealand dollar were each down by about 0.3% against the greenback. Friday, precious metals began to decline again. After a 3.5% overnight jump, spot gold fell 0.6%, to $4,189 per ounce. Spot silver, meanwhile, also dropped 0.6%, to $66.93, after a 5.8% increase. Stella Qiu, Shri Navaratnam, and Kevin Buckland edited the report.
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India curbs bulk fuel buying at retail pumps, caps diesel sales
India has banned commercial consumers from purchasing gasoline and diesel from retail fuel stations, and placed limits on the daily purchase of diesel to prevent local shortages. This is due to disruptions in global supply chains caused by the Middle East war. According to a government directive issued late Thursday, retail fuel station dealers are required to sell no more than 200 litres per vehicle or customer a day. Customers cannot resell diesel. Diesel for commercial customers like trucking firms has been purchased at lower prices at state-run retail outlets than usual. This, in turn, has led to shortages of diesel at retail stations. The government stated that restrictions were needed to ensure a fair?availability? of petrol and diesel throughout the country, stop diversion and hoarding and maintain an uninterrupted fuel supply?at fair price. State fuel retailers lose about 36.5 rupees (0.38 cents) per liter of diesel sold to retail customers. However, industrial buyers can purchase the fuel at market prices. They lose 9 rupees a liter on gasoline sales. India is a net exporter of refined fuels. However, higher fuel sales within the country at subsided rates are affecting the profitability of state-owned fuel retailers such as Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp. About 90% of India's fuel stations are controlled by three state-owned?fuel retailers. The government order referred to the U.S.-Israeli conflict with Iran and said that geopolitical tensions had strained the global petroleum supply chains, shipping logistics, and availability of petroleum products. This made prudent management and conservation necessary. The order stated that the measures would remain in effect for an initial period up to 90 days, unless they were revoked by a separate order.
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Oil losses continue as Trump cancels planned strike on Iran
After U.S. President Donald Trump cancelled plans to strike Iran, fears of an escalation in 'hostilities' following tit-fortat attacks earlier this week were reduced. Brent futures increased $1.21, or 1.3%, to $89.17 per barrel at 0042 GMT. U.S. West Texas Intermediate crude (WTI), however, rose $1.23 or 1.4% to $86.48. Brent crude was 4.2% less than WTI on a weekly basis. Trump, who threatened to hit Iran'very hard,' called off planned strikes Thursday, saying that discussions with Iran have progressed. Fars, Iran's semiofficial news agency, reported that Tehran has not approved the text of any agreement. Tony Sycamore, IG's market analyst, said: "This could be a false dawn but the market has reacted quickly and decisively." Iran announced on Wednesday that the Strait of Hormuz would be closed, stating that any vessel trying to pass through it would face fire. The blockade by Tehran of the Strait of Hormuz, which is normally used to transport a fifth of all global oil and LNG shipments, kept oil prices high. Commercial ships continue to pass through the waterway, according to the U.S. Military. IG's Sycamore stated that even if oil prices correct -downwards "as long the?price?can hold above the support?in?the low $80s the risks are firmly skewed upwards," IG said. (Reporting and editing by SonaliPaul; Sudarshanvaradhan)
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Oil hits a two-month low as stocks extend their rally on Gulf breakthrough hope
The dollar, bond yields and oil prices all fell, easing inflation fears. Elon Musk’s SpaceX has been making history by launching the largest-ever initial public offer. The IPO raised a new record of $75 billion. This valued the rocket and spacecraft maker at $1.77 trillion, making Musk the first trillionaire in the world. Donald Trump announced on Thursday, just hours after threatening to launch more attacks on Iran, that a deal could be reached as early as this weekend. He said that negotiations with Tehran have reached the highest levels of Iran’s leadership, and were approved by a broad coalition regional powers. Trump's comments follow repeated bouts optimism from the President that failed to produce a deal. This rattled market sentiment. "This does look perhaps a little more tangible than what we've had before," said Ray Attrill. He is the head of FX Strategy at National Australia Bank. If we hear anything from the?Iran, that sounds positive (about a peace agreement), it is clear that odds will change quite dramatically. If confirmed, the deal would be the biggest diplomatic breakthrough to date in ending the three-month war that has driven global energy prices higher. To curb war-driven inflation, the European Central Bank raised interest rates for nearly three years. The news of an agreement sent oil prices to a two-month low. U.S. West Texas Intermediate crude futures dropped 1.9% to $86.08 per barrel on top of the 2.6% decline overnight. Brent crude futures fell 1.5% to $89.08 a barrel after falling nearly 3% over night. The Nikkei 225 index of Japan rose by 4.3%. Australia's resource-heavy shares gained 1.8%. South Korea's KOSPI soared by 8.3%. Overnight Wall Street surged, with all three major indexes posting their largest daily gains since the U.S.-Iran ceasefire agreement on April 8, when they agreed to a short-term truce. The Nasdaq rose 2.5% on expectations of a successful market debut for Musk's SpaceX. The Middle East conflict has driven up energy prices, according to data. The number of Americans claiming unemployment benefits has increased slightly last week. This indicates that the labor market is still resilient. As markets lowered their bets on a Federal Reserve rate hike this year, Treasuries gained. The price for an October rate hike has dropped from 51% to 36%. The yields on two-year Treasury bonds were unchanged at 4,066%, after falling 6 basis points overnight. The benchmark 10-year Treasury rates held steady at 4.4631% after dropping almost 8 basis points overnight. Dollar losses were attributed to lower yields. The dollar index, which measures the greenback's value against its major peers, is now at 99.78 after losing 0.4% overnight. The yen climbed 0.1% to 160.19 yen after a 0.4% decline in the previous session. The yen is still below the crucial 160 level, and traders are on alert for any Japanese intervention. The lower dollar has helped precious metals. Gold spot rose by 0.2%, to $4,222 per ounce after a 3.5% overnight jump, and silver spot rose by 0.3%, to $67.52 per ounce following a 5.8% increase. (Reporting and editing by Shri Navaratnam.)
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Bangladesh tests solar panels on rice crops to provide food and power
Bangladesh tests whether crops can grow on solar panels Land scarcity fuels dual push for food and energy * The economics of agrivoltaic scaling up Tahmid Zami Tahmid Zami A nation of about?175 millions is dependent on imports to meet 95% of their?energy requirements. This dependence has been made worse by the rising costs due to the war in the Middle East. It is also looking at ways to diversify the energy supply, including more renewable energy. Solar energy is the largest source of renewable power in Bangladesh. However, it only represents 4.5% of total generation capacity. Solar panels can be installed either on roofs or on the ground. Roof space is limited, and ground systems take land that could otherwise be used for housing or farming. Sohanur Rahman is the executive coordinator for YouthNet Global. A climate justice campaign group. Researchers are looking into the new technology of "agrivoltaics", where crops and livestock share space with solar panels. This year, the Bangladeshi development organization BRAC and the research organisation Institute of Governance and Development launched a project to install solar panels over farmland at Manikganj. The town is located about 50 kilometers (30 miles) from the capital Dhaka. The H&M Foundation is a non profit linked to the Swedish clothing company H&M. RICE NEEDS THE SUN, BUT SHADE IS GOOD FOR WORKERS Bangladesh has little land that is not agricultural for solar power. Solar parks were previously proposed but scrapped because of concerns about land loss and livelihoods. Solar panels at Manikganj are more than two metres above ground level, which allows varying amounts to sunlight to reach the crops below. Researchers will measure rainfall, wind speeds and other microclimate information and compare yields with nearby controls plots in order to determine which panel height, spacing, and crop combinations balance food production and?generation. For farm workers in Bangladesh, the average wage is $7 per day. This includes rice, coriander and other crops such as bottle gourds, onions, pumpkins, and bottle gourds. Biswas, a farm worker, said that the shaded area helps to preserve soil moisture and also makes it more comfortable for the workers on hot summer days. The Wave Foundation and the German Development Agency GIZ, which works on poverty and climate issues in Bangladesh and Germany, have conducted agrivoltaic trials in Manikganj. In Chuadanga, agrivoltaic tests have also tested the rearing of goats and chickens. Rohini Kamal, assistant professor at BIGD, explained that farmers in Bangladesh prefer to grow rice, the main staple of the country, and this requires lots of sunlight. The ongoing project focuses on finding ways to grow rice using solar panels. He said that low-lying areas like Manikganj, which are often submerged by the monsoons, need rice varieties that can withstand flooding. The solar mounting structures must also be strong enough to withstand storms. Will the sums add up? The viability of agrivoltaics systems is dependent on several variables. A pilot study conducted in Chuadanga, 2024, estimated that the revenue generated by both crops and electricity would reduce the payback time for the panels from five to six years to three to four years under favorable conditions. Mehedi Bappy, agronomist and project manager at the Manikganj site, explained that lower, closely-spaced panels are less expensive to build but produce more shade. Higher, more widely-spaced structures are more expensive but are better for sun-loving plants like rice. Bappy says that the rice yield looks good so far, but more data is needed from other crop cycles. The project pays a daily wage to the workers, and the electricity produced is used to irrigate nearby farmland. Kamal explained that once the project is connected to the national grid it will be possible to export the excess electricity generated. However, existing rules must change in order for farmers and operators to receive direct payment for the power produced by solar panels on their land. Dipal Chandra Barua is the president of Bright Green Energy Foundation in Bangladesh, an NGO that installs renewable energy systems at small scales for rural communities. Researchers are still waiting to see if the solar panels placed above the crops will deliver on their promise.
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Vale's largest shareholder calls for a meeting to discuss the removal of its chairman
Brazil's Vale, one of the largest iron ore producers in the world, announced on Thursday that its largest shareholder, the pension fund Previ had requested a meeting of shareholders to vote "on the removal" of Chairman Daniel Andre Stieler. Previ, which manages 'pension funds for Banco do Brasil employees, has proposed appointing Jose Mauricio Coelho as Vale board chairman and backing the current board member Manuel Oliveira, according to a filing by the miner. Vale has stated that?Previ has argued Oliveira's contribution will be to "the strengthening governance practices, improvement of strategic management, and alignment with the interest of shareholders and stakeholders." The mining company has not released the document that it received from Previ. The pension fund didn't immediately reply to a comment request sent outside of business hours. Vale said its board is evaluating the steps needed to convene the meeting of shareholders. According to regulatory documents, Previ holds a stake of about 7% in Vale. Marcio Antonio Chimento was named CEO of the fund a month ago after Joao Louiz Fukunaga quit. Chiumento was appointed to Vale's Board of Directors earlier this year. (Reporting and editing by Kylie Madry, Daina Beth Solon and Andre Romani)
Gold to lose weekly value as inflation and rate hikes persist
Gold prices fell on Friday, and were on track to lose a significant amount of money for the week. This was due to concerns about inflation and possible interest rate increases by the U.S. Federal Reserve.
As of 0252 GMT the spot gold price was down 0.5%, at $4,191.17 an ounce. This was a loss of 3.2% for the week. U.S. Gold Futures for August Delivery rose 2.4% to $ 4,212.70.
Gold fell to a six-month low before closing at $4,219.69 on Thursday, after U.S. president Donald?Trump cancelled planned military strikes against Iran and announced an imminent peace agreement.
Edward Meir is an analyst with Marex. He said that the price of oil was "completely driven by geopolitical headlines."
The markets will pay attention to any indication that the Fed might raise rates. If they hint in that direction, then I think gold could?break under the $4,000 mark.
Gold prices have fallen by about 20% in the last few months, as central banks are worried that inflation could be sparked by rising energy costs, causing them to raise interest rates and increase the cost of owning the metal.
U.S. Producer Prices increased more than expected during May, leading the biggest annual increase in three-and-a half years. The Middle East Conflict drove up the price of energy products.
According to CME Group’s FedWatch tool, traders are pricing in a 60% probability of an increase in the U.S. rate for December.
Donald Trump said on Thursday that the United States and Iran might sign a deal this weekend to reopen the Strait of Hormuz?to shipping. Iran, however, countered by saying that they had not made a final decision about an agreement.
The New York SPDR Gold Trust's holdings, the largest gold-backed ETF, dropped about 0.3% on Wednesday to?923.89 tons.
Silver spot?fell by 0.4%, to $67.10 an ounce. Platinum?gained by 0.7%, to $1731.40. Both metals are headed for weekly losses. Palladium rose to $1289.33 and has gained 5% so far this week. (Reporting from Pablo Sinha, Bengaluru. Editing by Rashmi aich and Mrigank dhaniwala.)
(source: Reuters)